Power sector of Andhra Pradesh is divided into 4 categories namely Regulation, Generation, Transmission and Distribution. Andhra Pradesh Electricity Regulatory Commission (APERC) is the regulatory body.APGENCO deals with the electricity production and also maintenance, proposes new projects and upgrades existing ones as well. The APGENCO also set up a Special Purpose Vehicle (SPV), named as Andhra Pradesh Power Development Company Limited (APPDCL), a joint venture company of APGENCO (with 50% equity) and IL&FS (50% equity) to set up Krishnapatanam thermal power project (2x800 MW).
APTRANSCO is set up for transmission of power. Power distribution in the state is divided into two divisions, namely Eastern Power Distribution Corporation Limited (EPDCL) and Southern Power Distribution Corporation Limited (SPDCL), which distributes the power to the households and the industries.APGENCO, APPDCL, NTPC and other private firms contribute to the generation of power in the state of Andhra Pradesh. Andhra Pradesh has become the second state in India to achieve 100% electrification of all households.
The total installed utility power generation capacity is nearly 21,000 MW in the state. Only 13,688.80 MW is the committed power supply to the state. APtransCo has made long term power purchase agreements for 10,718.31 MW as of 31 January 2016. Rest of the capacity is exporting electricity mainly to Telangana state depending on fuel availability. The per capita electricity consumption is 1003 units with 48,323 million KWh gross electricity supplied in the year 2014–15. The performance of Krishnapatanam thermal power station (2X800 MW) with super critical pressure technology is not satisfactory even after one year commercial operation as the units rarely operate at rated capacity forcing the state to purchase costly power from day ahead trading in IEX.